Taxation Laws Amendment Act (No. 4) 1988 (Cth)
This compilation was prepared on 23 September 2010
taking into account amendments up to Act No. 75 of 2010
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
TABLE OF PROVISIONS
PART I - PRELIMINARY
Section
Short title [
Commencement [
PART II - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
Principal Act
Reduction of taxable value - remote area housing
Insertion of new section:
Guideline price for repurchase of remote area residential
property
Insertion of new Divisions:
Amortisation of taxable value of fringe benefits relating
to remote area home ownership schemes
Amendment of assessments
Reducible fringe benefits relating to remote area home
repurchase schemes
Interpretation
Remote area housing
Application of amendments
Amendment of assessments
PART III - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Principal Act
Where consideration not in cash
Insertion of new section:
Non-cash business benefits
Exemption of certain pensions
Exemption of certain benefits in the nature of income
Assessable income from property purchased and sold within 12 months
(on or before 25 May 1988)
Cost price of natural increase
Rebate on dividends
Rebate on dividends paid as part of dividend stripping operation
Insertion of new section:
Rebate not allowable for certain unfranked dividends paid
to private company
Calculation of taxable income
Divisible amounts of assessable income
Full-year deductions and partnership deductions
Divisible deductions
Insertion of new section:
Agreements for the provision of non-deductible non-cash
business benefits
Calculation of depreciation
Repeal of section 56A
Repeal of section 57
Special depreciation allowance to primary producers
Depreciation on property used for primary production in the Northern
Territory
Special depreciation on manufacturing plant and plant used in
primary production
Special depreciation on new plant first used or installed on or
after 1 July 1975 and before 1 July 1976
Repeal of section 57AE
Special depreciation on plant
Repeal of section 57AH
Special depreciation on storage facilities for petroleum fuel
Special depreciation on property used for basic iron or steel
production
Repeal of section 57AL
Special depreciation on trading ships
Depreciation on pipe-lines for transporting petroleum
Cost of mains electricity connections
Gifts, pensions etc.
Deduction in respect of new plant installed on or after 1 January
1976
Interpretation
Insertion of new section:
Car records to be completed before lodgment date of return
etc.
Insertion of new Subdivision:
Interpretation
Period of deductibility of certain advance expenditure
Transfer etc. of rights under agreement
Partnership changes where entire interest in agreement
rights is not transferred
Interpretation
Allowable capital expenditure
Allowable capital expenditure
Qualifying expenditure
Insertion of new Division:
Interpretation
Capital entitlement factor
159GZZA. Foreign controller
159GZZB. Acquisition of asset not previously in existence
159GZZC. Acquisition of asset through interposed persons
159GZZD. Application of Division
159GZZE. Reduction or extinction of interest deduction in case of
certain created debt
159GZZF. Section 159GZZE not to apply in certain cases
Rebate in respect of certain pensions
Amendments relating to car records
Application of amendments
Special transitional provisions - non-cash business benefits
provided on or before 31 August 1988
Transitional - section 70A
Provisional tax for 1988-89 year
PART IV - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953
Principal Act
Repeal of section 14ZKA
SCHEDULE
AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936 RELATING TO CAR RECORDS
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988 - LONG TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 1
Short
title [
1. This Act may be cited as the Taxation Laws Amendment Act (No. 4)
1988.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 2
Commencement
[
2. (1) Subject to subsection (2), this Act commences on the day on which it
receives the Royal Assent.
(2) Paragraph 44 (a) and subsection 54 (11) commence immediately after the
commencement of the Taxation Laws Amendment Act 1989.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 3
Principal Act
3. In this Part, "Principal Act" means the Fringe Benefits Tax Assessment
Act 1986*1*.
*1* No. 39, 1986, as amended. For previous amendments, see Nos. 48 and 112,
1986; Nos. 23 and 145, 1987; No. 139, 1987 (as amended by Nos. 11 and 78,
1988); and Nos. 6, 78 and 97, 1988.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 4
Reduction of taxable value-remote area housing
4. Section 60 of the Principal Act is amended by adding at the end the
following subsections:
"(4) Where:
the recipient of an expense payment fringe benefit in relation to an
employer in relation to a year of tax is an employee of the employer; and
the recipients expenditure is in respect of remote area residential
property;
the amount that, but for this subsection, would be the taxable value of the
fringe benefit in relation to the year of tax shall be reduced by 50%.
"(5) Where:
the recipient of a property fringe benefit in relation to an employer
in relation to a year of tax is an employee of the employer; and
the recipients property is a remote area residential property option
fee; the amount that, but for this subsection, would be the taxable value of
the fringe benefit in relation to the year of tax shall be reduced by 50%.
"(6) Where:
the recipient of a property fringe benefit in relation to an employer
in relation to a year of tax is an employee of the employer; and
the recipients property is remote area residential property repurchase
consideration;
the amount that, but for this subsection, would be the taxable value of the
fringe benefit in relation to the year of tax shall be reduced by 50%.
"(7) Where:
subsection (6) applies to a property fringe benefit; and
the amount paid by the provider of the fringe benefit by way of
consideration for the purchase of the estate or interest concerned exceeds
both:
the market value of the estate or interest at the time of the
purchase; and
the guideline price of the estate or interest at the time of the
purchase;
a reference in subsection (6) to the taxable value of the fringe benefit is a
reference to so much of the taxable value as is attributable to the amount of
the guideline price.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 5
5. After section 60 of the Principal Act the following section is inserted:
Guideline price for repurchase of remote area residential property
"60AA. (1) In this section:
'index number', in relation to a quarter, means the All Groups Consumer
Price Index number, being the weighted average of the 8 capital cities,
published by the Australian Statistician in respect of that quarter.
"(2) Subject to subsection (3), if at any time, whether before or after the
commencement of this section, the Australian Statistician has published or
publishes an index number in respect of a quarter in substitution for an index
number previously published by the Australian Statistician in respect of that
quarter, the publication of the later index number shall be disregarded for
the purposes of this section.
"(3) If at any time, whether before or after the commencement of this
section, the Australian Statistician has changed or changes the reference base
for the Consumer Price Index, then, for the purposes of the application of
this section after the change took place or takes place, regard shall be had
only to index numbers published in terms of the new reference base.
"(4) A reference in subsection 60 (7) to the guideline price of an estate or
interest in land is a reference to:
if the factor ascertained in accordance with subsections (5) and (6) in
relation to the market value of the estate or interest as at the time the
estate or interest was acquired by the employee is greater than 1-the market
value as at that time multiplied by that factor; or
in any other case-the market value as at that time.
"(5) The factor to be ascertained for the purposes of subsection (4) in
relation to the market value of the estate or interest in land as at the time
of the acquisition of the estate or interest by the employee is the number
(calculated to 3 decimal places) ascertained by dividing the index number in
respect of the quarter of the year in which the employee sold the estate or
interest to the provider by the index number in respect of the quarter of the
year in which the estate or interest was acquired by the employee.
"(6) Where the factor ascertained in accordance with subsection (5) would,
if it were calculated to 4 decimal places, end with a number greater than 4,
that factor shall be taken to be the factor calculated to 3 decimal places in
accordance with that subsection and increased by 0.001.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 6
6. After section 65C of the Principal Act the following Divisions are
inserted:
"Division 14A-Amortisation of Taxable Value of Fringe Benefits relating to
Remote Area Home Ownership Schemes
Amortisation of taxable value of fringe benefits relating to remote area home
ownership schemes
"65CA. (1) Where:
the recipient of any of the following fringe benefits in relation to an
employer in relation to a year of tax (in this section called the 'benefit
year of tax') is an employee of the employer:
a property fringe benefit where the recipients property is remote
area residential property;
a property fringe benefit where the recipients property is a
remote
area residential property option fee;
an expense payment fringe benefit where the recipients
expenditure
is in respect of remote area residential property;
in the case of a property fringe benefit where the recipients property
is remote area residential property-at or before the provision time, the
employee entered into a recognised remote area housing obligation restricting
the disposal of the estate or interest concerned;
in the case of an expense payment fringe benefit-at or before the time
when the employee acquired the estate or interest concerned, the employee
entered into a recognised remote area housing obligation restricting the
disposal of the estate or interest concerned; and
in all cases-the period (in this section called the 'overall
amortisation period') commencing at whichever of the following times is
applicable:
if subparagraph (a) (i) or (ii) applies-the provision time;
if subparagraph (a) (iii) applies-the time when the recipients
expenditure was incurred;
(which time is in this section called the 'benefit time') and ending at
the
earliest of the following later times:
the time when the employee ceases or first ceases to be subject
to
the recognised remote area housing obligation referred to in paragraph (b) or
(c) of this subsection or in paragraph 142 (2A) (e), as the case requires;
the time when the employee ceases or first ceases to be employed
by
the employer;
the time when the employee ceases or first ceases to occupy or use
the dwelling concerned as his or her usual place of residence;
the time of the death of the employee;
the end of the period of 7 years after the benefit time;
commences and ends in different years of tax;
the fringe benefit is an amortised fringe benefit.
"(2) The notional amortisation period in relation to the amortised fringe
benefit is the period commencing at the benefit time and ending at the earlier
of the following times:
the end of the period specified in the contract to which the recognised
remote area housing obligation concerned relates, being the period during
which the employee is to be subject to that obligation;
the end of the period of 7 years after the benefit time.
"(3) If the overall amortisation period has not come to an end before the
end of a particular year of tax (in this subsection called the 'current year
of tax'), the amortised amount, in relation to the current year of tax, of the
amortised fringe benefit is the amount calculated in accordance with the
formula:
Taxable value X Current amortisation period
Taxable value X Notional amortisation period
where:
Taxable value is the taxable value, in relation to the benefit year of tax,
of the fringe benefit;
Current amortisation period is the whole number of months (or part months)
in the current year of tax that are included in the notional amortisation
period;
Notional amortisation period is the whole number of months (or part months)
that are included in the notional amortisation period.
"(4) If the overall amortisation period comes to an end during a particular
year of tax (in this subsection called the 'current year of tax'), the
amortised amount, in relation to the current year of tax, of the amortised
fringe benefit is the amount calculated in accordance with the formula:
Taxable value-Previously amortised amounts
where:
Taxable value is the taxable value, in relation to the benefit year of tax,
of the fringe benefit;
Previously amortised amounts is the sum of the amortised amounts, in
relation to each year of tax preceding the current year of tax, of the fringe
benefit. "(5) Where the recipients expenditure in relation to an expense
payment
fringe benefit was incurred before 1 July 1986, paragraph (1) (d) applies in
relation to the fringe benefit as if the recipients expenditure had been
incurred on 1 July 1986.
Amendment of assessments
"65CB. Nothing in section 74 prevents the amendment at any time of an
assessment for the purposes of giving effect to this Division.
"Division 14B-Reducible Fringe Benefits relating to Remote Area Home
Repurchase
Schemes
Reducible fringe benefits relating to remote area home repurchase schemes
"65CC. (1) Where:
the recipient of a property fringe benefit in relation to an employer
in relation to a year of tax is an employee of the employer;
the recipients property is remote area residential property repurchase
consideration;
the taxable value of the fringe benefit in relation to the year of tax
is nil; and
the market value of the estate or interest purchased by the provider of
the fringe benefit exceeds the amount paid by the provider by way of
consideration for the purchase of the estate or interest;
the fringe benefit is a reducible fringe benefit.
"(2) The reduction amount, in relation to the year of tax, of the reducible
fringe benefit is 50% of the amount of the excess referred to in paragraph (1)
(d).".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 7
Interpretation
7. Section 136 of the Principal Act is amended:
by omitting from subsection (1) the definition of "fringe benefits
taxable amount" and substituting the following definition:
" 'fringe benefits taxable amount', in relation to an employer in
relation
to a year of tax (in this definition called the 'current year of tax'), means
the sum of the following amounts:
the sum of the taxable values, in relation to the current year
of
tax, of all the fringe benefits (other than amortised fringe benefits) in
relation to the employer in relation to the current year of tax;
the sum of the amortised amounts, in relation to the current
year
of tax, of all the amortised fringe benefits in relation to the employer in
relation to the current year of tax and any other year of tax;
reduced by the sum of the reduction amounts, in relation to the
current
year of tax, of all the reducible fringe benefits in relation to the employer
in relation to the current year of tax;";
by inserting in subsection (1) the following definitions:
" 'amortised fringe benefit' has the meaning given by section 65CA;
'reducible fringe benefit' has the meaning given by section 65CC;".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 8
Remote area housing
8. Section 142 of the Principal Act is amended:
by omitting paragraphs (1) (b) and (c) and (1A) (b) and (c) and
substituting the following paragraph:
the common conditions set out in subsection (2E) are satisfied in
relation to the occupation period; and";
by omitting from subsection (2) "in land on which is situated a
dwelling occupied or used by the employee immediately after the provision time
as his or her usual place of residence where -" and substituting the following
words and paragraphs:
"in land:
on which is situated a dwelling occupied or used by the employee
immediately after the provision time as his or her usual place of residence;
or
on which the employee proposes, as at the provision time, to
construct, or complete the construction of, a dwelling to be occupied or used
by the employee as his or her usual place of residence;
where:
if paragraph (ab) applies-the Commissioner is satisfied that the
employee has pursued sustained reasonable efforts to:
commence the construction, or commence the completion of the
construction, of the dwelling within 6 months after the provision time; and
occupy or use the dwelling as his or her usual place of
residence within 18 months after the provision time;";
by omitting from subparagraph (2) (a) (i) "dwelling" and substituting
"land";
by omitting paragraphs (2) (b) and (c) and substituting the following
paragraph:
the common conditions set out in subsection (2E) are satisfied in
relation to the provision time; and";
by adding at the end of subparagraph (2) (d) (ii) "or Division 14A of
Part III";
by inserting after subsection (2) the following subsections:
"(2A) In this Act, a reference, in relation to a property fringe benefit
in relation to a year of tax in relation to an employee of an employer, to a
remote area residential property option fee is a reference to property that
consists of a fee paid to the employee by way of consideration in respect of
the grant of an option to purchase an estate or interest in land:
held by the employee; and
on which:
there is a dwelling occupied or used by the employee
immediately
after the provision time as his or her usual place of residence; or
the employee proposes, as at the provision time, to construct,
or
complete the construction of, a dwelling to be occupied or used by the
employee as his or her usual place of residence;
where:
if subparagraph (b) (ii) applies-the Commissioner is satisfied that
the employee has pursued sustained reasonable efforts to:
commence the construction, or commence the completion of the
construction, of the dwelling within 6 months after the provision time; and
occupy or use the dwelling as his or her usual place of
residence
within 18 months after the provision time;
at the provision time:
the land was situated in a State or internal Territory and was
not at a location in, or adjacent to, an eligible urban area; and
the employee was a current employee of the employer and the
usual
place of employment of the employee was not at a location in, or adjacent to,
an eligible urban area;
the option was granted at or before the time the employee acquired
the estate or interest and constituted a recognised remote area housing
obligation restricting the disposal of the estate or interest concerned;
the common conditions set out in subsection (2E) are satisfied in
relation to the provision time; and
the property was not provided to the employee under:
a non-arm's length arrangement; or
an arrangement that was entered into by any of the parties to
the
arrangement for the purpose, or for purposes that included the purpose, of
enabling the employer to obtain the benefit of the application of section 60
or Division 14A of Part III.
"(2B) In this Act, a reference, in relation to a property fringe benefit
in relation to a year of tax in relation to an employee of an employer, to
remote area residential property repurchase consideration is a reference to
property that consists of an amount paid to the employee by way of
consideration for the purchase of an estate or interest in land:
held by the employee; and
on which:
there is a dwelling occupied or used by the employee
immediately
before the provision time as his or her usual place of residence; or
the employee proposed, as at the time the employee acquired the
estate or interest, to construct, or complete the construction of, a dwelling
to be occupied or used by the employee as his or her usual place of
residence;
where:
if subparagraph (b) (ii) applies-the Commissioner is satisfied that
the employee has pursued sustained reasonable efforts to:
commence the construction, or commence the completion of the
construction, of the dwelling within 6 months after the time the employee
acquired the estate or interest; and
occupy or use the dwelling as his or her usual place of
residence
within 18 months after the time the employee acquired the estate or interest;
at the provision time:
the land was situated in a State or internal Territory and was
not at a location in, or adjacent to, an eligible urban area; and
the employee was a current employee of the employer and the
usual
place of employment of the employee was not at a location in, or adjacent to,
an eligible urban area;
at or before the time the employee acquired the estate or interest,
the employee entered into a recognised remote area housing obligation
restricting the disposal of the estate or interest concerned;
the purchase by the provider of the fringe benefit of the estate or
interest is in accordance with that obligation;
the common conditions set out in subsection (2E) are satisfied in
relation to the provision time; and
the property was not provided to the employee under:
a non-arm's length arrangement; or
an arrangement that was entered into by any of the parties to
the
arrangement for the purpose, or for purposes that included the purpose, of
enabling the employer to obtain the benefit of the application of section 60
or Division 14B of Part III.
"(2C) In this Act, a reference, in relation to an expense payment fringe
benefit in relation to a year of tax in relation to an employee of an
employer, to recipients expenditure in respect of remote area residential
property is a reference to recipients expenditure that is incurred wholly:
to enable the employee to acquire an estate or interest in land on
which a dwelling was subsequently to be constructed or to acquire an estate or
interest in land and construct, or complete the construction of, a dwelling on
the land;
to enable the employee to construct, or complete the construction
of,
a dwelling on land in which the employee holds an estate or interest;
to enable the employee to acquire an estate or interest in land on
which there is a dwelling; or
to enable the employee to extend a dwelling, being a dwelling
constructed on land in which the employee holds an estate or interest, by
adding a room or part of a room to the dwelling, as the case may be;
where:
if paragraph (a) or (b) applies:
at the time the recipients expenditure was incurred, the
employee
proposed to occupy or use the dwelling as his or her usual place of residence;
and
the Commissioner is satisfied that the employee has pursued
sustained reasonable efforts to:
(A) commence the construction, or commence the completion of the
construction, of the building constituting or containing the dwelling within 6
months after the time the recipients expenditure was incurred; and
(B) occupy or use the dwelling concerned as his or her usual place
of residence within 18 months after the time the recipients expenditure was
incurred;
if paragraph (c) or (d) applies-as soon as reasonably practicable
after the time the recipients expenditure was incurred, the dwelling concerned
was occupied or used by the employee as his or her usual place of residence;
at the time the recipients expenditure was incurred:
the land was situated in a State or internal Territory and was
not at a location in, or adjacent to, an eligible urban area; and
the employee was a current employee of the employer and the
usual
place of employment of the employee was not at a location in, or adjacent to,
an eligible urban area;
the common conditions set out in subsection (2E) are satisfied in
relation to the time the recipients expenditure was incurred; and
the fringe benefit was not provided to the employee under:
a non-arm's length arrangement; or
an arrangement that was entered into by any of the parties to
the
arrangement for the purpose, or for purposes that included the purpose, of
enabling the employer to obtain the benefit of the application of section 60
or Division 14A of Part III.
"(2D) In this Act, a reference, in relation to a property fringe benefit
or an expense payment fringe benefit in relation to a year of tax in relation
to an employee of an employer, to a recognised remote area housing obligation
restricting the disposal of an estate or interest in land is a reference to a
contractual obligation entered into by the employee with the employer or an
associate of the employer not to dispose of the estate or interest concerned
except:
to the employer or an associate of the employer; and
for a price specified in, or ascertained in accordance with, the
contract concerned;
at any time during a period specified in the contract concerned, being a
period that ends not earlier than 5 years after:
in the case of a property fringe benefit where the recipients
property is remote area residential property repurchase consideration-the time
the employee acquired the estate or interest concerned;
in the case of any other property fringe benefit-the provision
time;
or
in the case of an expense payment fringe benefit-the time the
recipients expenditure was incurred.
"(2E) For the purposes of the application of this section to a fringe
benefit in relation to a year of tax in relation to an employee of an
employer, the common conditions in relation to a particular period or in
relation to a particular time are as follows:
it is customary for employers in the industry in which the employee
was employed during that period or at that time, as the case may be, to
provide housing assistance for their employees;
it would be concluded that it was necessary for the employer,
during
the year of tax, to provide or arrange for the provision of housing assistance
for employees of the employer because:
the nature of the employer's business was such that employees
of
the employer were liable to be frequently required to change their places of
residence;
there was not, at or near the place or places at which the
employees of the employer were employed, sufficient suitable residential
accommodation for those employees (other than residential accommodation
provided by or on behalf of the employer); or
it is customary for employers in the industry in which the
employee was employed during that period or at that time, as the case may be,
to provide housing assistance for their employees.";
by omitting "or" from the end of paragraph (3) (c);
by adding at the end of subsection (3) the following paragraphs:
the making of payments in discharge or reimbursement of expenditure
incurred by a person in acquiring or constructing residential property; or
the provision of a residential property ownership scheme involving:
the granting by employees of options to purchase employees'
residential property; or
the purchase of employees' residential property.";
by adding at the end the following subsection:
"(4) Nothing in section 74 prevents the amendment of an assessment at
any
time for the purpose of giving effect to paragraph (1) (ac), (2A) (c), (2B)
(c) or (2C) (e).".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 9
Application of amendments
9. (1) Subject to this section, the amendments made by this Part apply to
assessments of the fringe benefits taxable amount of an employer of the
transitional year of tax and of each subsequent year of tax.
(2) Subsection 60 (7) of the Principal Act as amended by this Act does not
apply to:
a purchase that occurred before 1 August 1987; or
a purchase that occurred on or after that date pursuant to a
contractual obligation in existence before that date.
(3) The amendments made by this Part do not apply to instalments of tax in
respect of the transitional year of tax.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 10
Amendment of assessments
10. Nothing in section 74 of the Principal Act prevents the amendment of an
assessment made before the commencement of this section for the purpose of
giving effect to this Act.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 11
Principal Act
11. In this Part, "Principal Act" means the Income Tax Assessment Act
1936*2*.
*2* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No.
5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69,
1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37,
1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48,
1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No.
43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65,
1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960;
Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46,
68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos.
19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101,
1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972;
Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20,
1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143,
165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171
and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24,
57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and
175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49,
51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984;
No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and
174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51,
109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52,
1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141,
1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by
No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as
amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988);
and Nos. 8, 11, 59, 75, 78, 80 and 87, 1988.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 12
Where consideration not in cash
12. Section 21 of the Principal Act is amended by adding at the end the
following subsection:
"(2) This section has effect subject to section 21A.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 13
13. After section 21 of the Principal Act the following section is inserted:
Non-cash business benefits
"21A. (1) For the purposes of this Act, in determining the income derived by
a taxpayer, a non-cash business benefit that is not convertible to cash shall
be treated as if it were convertible to cash.
"(2) For the purposes of this Act, if a non-cash business benefit (whether
or not convertible to cash) is income derived by a taxpayer:
the benefit shall be brought into account at its arm's length value
reduced by the recipient's contribution (if any); and
if the benefit is not convertible to cash-in determining the arm's
length value of the benefit, any conditions that would prevent or restrict the
conversion of the benefit to cash shall be disregarded.
"(3) Where:
a non-cash business benefit is income derived by a taxpayer in a year
of income; and
if the taxpayer had, at the time the benefit was provided, incurred and
paid unreimbursed expenditure in respect of the provision of the benefit equal
to the amount of the arm's length value of the benefit-a once-only deduction
would, or would but for section 82A, and Subdivisions F and G of Division 3,
have been allowable to the taxpayer in respect of a percentage (in this
subsection called the 'deductible percentage') of the expenditure;
the amount that, apart from this subsection, would be applicable under
subsection (2) of this section in respect of the benefit shall be reduced by
the deductible percentage.
"(4) Where:
a non-cash business benefit is income derived by a taxpayer in a year
of income; and
a percentage (in this subsection called the 'non-deductible
entertainment percentage') of any expenditure incurred by the provider in
respect of the provision of the benefit is non-deductible entertainment
expenditure;
the amount that, apart from this subsection, would be applicable under
subsection (2) in respect of the benefit shall be reduced by the
non-deductible entertainment percentage.
"(5) In this section:
'arm's length value', in relation to a non-cash business benefit, means:
the amount that the recipient could reasonably be expected to have
been required to pay to obtain the benefit from the provider under a
transaction where the parties to the transaction are dealing with each other
at arm's length in relation to the transaction; or
if such an amount cannot be practically determined-such amount as
the
Commissioner considers reasonable;
'income derived by a taxpayer' means income derived by a taxpayer in
carrying on a business for the purpose of gaining or producing assessable
income;
'non-cash business benefit' means property or services provided after 31
August 1988:
wholly or partly in respect of a business relationship; or
wholly or partly for or in relation directly or indirectly to a
business relationship;
'non-deductible entertainment expenditure' means expenditure to the extent
to which:
subsection 51AE (4) applies to the expenditure; and
but for that subsection, the expenditure would be deductible under
section 51;
'once-only deduction', in relation to expenditure, means a deduction in a
year of income in respect of a percentage of the expenditure where no
deduction is allowable in respect of a percentage of the expenditure in any
other year of income;
'provide':
in relation to property-includes dispose of (whether by assignment,
declaration of trust or otherwise); and
in relation to services-includes allow, confer, give, grant or
perform;
'recipient's contribution', in relation to a non-cash business benefit,
means the amount of any consideration paid to the provider by the recipient in
respect of the provision of the benefit, reduced by the amount of any
reimbursement paid to the recipient in respect of that consideration;
'services' includes any benefit, right (including a right in relation to,
and an interest in, real or personal property), privilege or facility and,
without limiting the generality of the foregoing, includes a right, benefit,
privilege, service or facility that is, or is to be, provided under:
an arrangement for or in relation to:
the performance of work (including work of a professional
nature), whether with or without the provision of property;
the provision of, or of the use of facilities for,
entertainment,
recreation or instruction; or
the conferring of rights, benefits or privileges for which
remuneration is payable in the form of a royalty, tribute, levy or similar
exaction;
a contract of insurance; or
an arrangement for or in relation to the lending of money.
"(6) Notwithstanding section 21, the consideration referred to in the
definition of 'recipient's contribution' in subsection (5) of this section is
consideration in money.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 14
Exemption of certain pensions
14. Section 23AD of the Principal Act is amended:
by omitting "or" from the end of paragraph (e) of the definition of
"excepted payment" in subsection (1);
by adding at the end of the definition of "excepted payment" in
subsection (1) the following word and paragraph:
an amount of pension to which subsection 65 (7) of the
Veterans'
Entitlements Act 1986 applies;";
by inserting after paragraph (3) (a) the following paragraph:
payments of special temporary allowances under section 65 of the
Veterans' Entitlements Act 1986;";
by omitting "and" from the end of paragraph (3) (c);
by adding at the end of subsection (3) the following word and
paragraph:
payments of special temporary allowances under section 172
of
the Social Security Act 1947.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 15
Exemption of certain benefits in the nature of income
15. Section 23L of the Principal Act is amended by adding at the end the
following subsection:
"(2) Where:
in a year of income, a taxpayer derives income consisting of one or
more non-cash business benefits (within the meaning of section 21A); and
the total amount that is applicable under section 21A in respect of
those benefits does not exceed $300;
the income is exempt income.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 16
Assessable income from property purchased and sold within 12 months (on or
before 25 May 1988)
16. Section 26AAA of the Principal Act is amended by inserting before
subsection (1) the following subsection:
"(1A) This section does not apply to a sale of property, or of an interest
in property, that occurs after 25 May 1988 (including a sale that occurs after
that date but is required by subsection (3) or (3A) to be treated as if it had
occurred on or before that date).".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 17
Cost price of natural increase
17. Section 34 of the Principal Act is amended:
by omitting "or" from the end of subparagraph (1) (a) (i);
by omitting "and" from the end of subparagraph (1) (a) (ii) and
substituting "or";
by omitting paragraph (1) (b) and substituting the following
subparagraph and paragraph:
"(iii) if:
(A) the taxpayer elects that this subparagraph apply in relation
to
live stock of that class; and
(B) the actual cost price per head of natural increase of that
class
is less than the minimum cost price prescribed in respect of live stock of
that class;
the actual cost price; and
where the cost price of natural increase of that class has not been
previously taken into account under this Act by the taxpayer:
the cost price selected by the taxpayer, not being less than
the
minimum cost price prescribed in respect of live stock of that class; or
(ii) if:
(A) the taxpayer elects that this subparagraph apply in relation
to
live stock of that class; and
(B) the actual cost price per head of natural increase of that
class
is less than the minimum cost price prescribed in respect of live stock of
that class;
the actual cost price.";
by omitting subsection (2) and substituting the following subsections:
"(2) For the purposes of paragraph (1) (b), where:
a taxpayer does not select, as mentioned in subparagraph (1) (b)
(i),
within the time and in the manner prescribed; and
subparagraph (1) (b) (ii) does not apply;
the taxpayer shall be taken to have selected, as the cost price, the
prescribed minimum cost price.
"(2A) An election by a taxpayer under subparagraph (1) (a) (iii) or (b)
(ii):
shall be made by notice in writing to the Commissioner; and
shall be lodged with the Commissioner on or before the date of
lodgment of the return of income of the taxpayer for the year of income to
which the election relates, or before such later date as the Commissioner
allows.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 18
Rebate on dividends
18. Section 46 of the Principal Act is amended by adding at the end the
following subsection:
"(9) A shareholder in a company is not entitled to a rebate under this
section in its assessment in respect of dividends paid to it by the company if
the income of the company is exempt from tax under paragraph 23 (d), (e), (ea)
or (f).".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 19
Rebate on dividends paid as part of dividend stripping operation
19. Section 46A of the Principal Act is amended by adding at the end the
following subsection:
"(16) A shareholder in a company is not entitled to a rebate under this
section in its assessment in respect of dividends paid to it by the company if
the income of the company is exempt from tax under paragraph 23 (d), (e), (ea)
or (f).".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 20
20. After section 46E of the Principal Act the following section is
inserted:
Rebate not allowable for certain unfranked dividends paid to private company
"46F. (1) In this section:
'group company' has the same meaning as in section 160AFE;
'unfranked part', in relation to a dividend (including a dividend that is
not a frankable dividend within the meaning of section 160APA), means so much
of the dividend as has not been franked in accordance with section 160AQF.
"(2) Subject to this section, a shareholder that is a private company in
relation to a year of income is not entitled to, and shall not be allowed, a
rebate under section 46 or 46A in respect of the unfranked part of a dividend
paid to the shareholder in the year of income.
"(3) Subsection (2) does not apply if the shareholder is a group company in
relation to the company paying the dividend in relation to the year of income
in which the dividend is paid.
"(4) Subsection (2) does not apply to dividends to the extent of the amount
of phasing-out dividends included in the distributable income of the
shareholder of the year of income concerned for the purposes of Division 7.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 21
Calculation of taxable income
21. Section 50C of the Principal Act is amended:
by omitting paragraph (2) (d) and substituting the following
paragraph:
if a full-year deduction is, or full-year deductions are,
allowable
to the company in relation to the year of income, being a full-year deduction
or full-year deductions:
allowable under section 51 in respect of a bad debt or under
section 63 or Subdivision BA of Division 3; or
to which paragraph 50F (1) (aa) applies;
the amount of that full-year deduction or the sum of the amounts of
those full-year deductions, as the case may be; and";
by omitting from paragraph (3) (b) "year of income otherwise than under
section 51, section 63 or Subdivision BA of Division 3" and substituting "year
of income, not being a full-year deduction or full-year deductions:
allowable under section 51 in respect of a bad debt or under
section
63 or Subdivision BA of Division 3; or
to which paragraph 50F (1) (aa) applies";
by omitting from paragraph (3) (c) all the words from and including "in
a case" to and including "Division 3" and substituting "in a case where there
is only one full-year deduction to which paragraph (b) applies".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 22
Divisible amounts of assessable income
22. Section 50E of the Principal Act is amended:
by inserting after paragraph (1) (g) the following paragraph:
any amount included in the assessable income of the company of
the
year of income under subsection 70A (5);";
by inserting after paragraph (2) (h) the following paragraphs:
where:
a divisible amount is included in the assessable income of the
company of the year of income under subsection 70A (5) by virtue of a
recoupment or recoupments in respect of expenditure of a capital nature
incurred by the company on the connection of mains electricity facilities;
the year of income is the first year of income in which the
company incurred expenditure of a capital nature on that connection; and
before the commencement of, or during, the relevant period,
the
company incurred expenditure of a capital nature on that connection;
a proportion of that divisible amount equal to the proportion that
the
number of whole days (if any) in the relevant period (being whole days
occurring after the time when the company first incurred expenditure of a
capital nature on that connection) bears to the number of whole days in the
year of income (being whole days occurring after the time when the company
first incurred expenditure of a capital nature on that connection) shall be
deemed to be included in the assessable income of the company of the relevant
period;
where:
a divisible amount is included in the assessable income of the
company of the year of income under subsection 70A (5) by virtue of a
recoupment or recoupments in respect of expenditure of a capital nature
incurred by the company on the connection of mains electricity facilities;
and
the year of income is not the first year of income in which
the
company incurred expenditure of a capital nature on that connection;
a proportion of that divisible amount equal to the proportion that
the
number of whole days (if any) in the relevant period bears to 365 shall be
deemed to be included in the assessable income of the company of the relevant
period;".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 23
Full-year deductions and partnership deductions
23. Section 50F of the Principal Act is amended by inserting after paragraph
(1) (a) the following paragraph:
the whole or part of any deduction under section 51, where that whole
or part is, because Subdivision H of Division 3 applies, allowable to the
company in relation to the year of income;".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 24
Divisible deductions
24. (1) Section 50G of the Principal Act is amended:
by omitting from paragraph (1) (a) "57AE, 57AH, 57AJ, 57AK, 57AL" and
substituting "57AJ, 57AK";
by omitting from paragraph (2) (a) ", 57AE, 57AH";
by omitting from subparagraph (2) (ba) (i) "57AE, 57AH or";
by omitting from subparagraph (2) (ba) (ii) "57AE, 57AH or 57AM, as the
case may be" and substituting "57AM";
by omitting from paragraph (2) (bb) "57AE, 57AH or".
(2) Section 50G of the Principal Act is amended:
by omitting from paragraph (1) (a) "or 70" and substituting ", 70 or
70A (as in force at any time after the commencement of section 41 of the
Taxation Laws Amendment Act (No. 4) 1988)";
by inserting after paragraph (2) (e) the following paragraphs:
"(ea) where:
a divisible deduction is allowable to the company in relation
to
the year of income under section 70A in respect of expenditure of a capital
nature incurred by the company on the connection of mains electricity
facilities;
the year of income is the first year of income in which the
company incurred expenditure of a capital nature on that connection; and
before the commencement of, or during, the relevant period,
the
company incurred expenditure of a capital nature on that connection;
a proportion of that divisible deduction equal to the proportion that
the number of whole days (if any) in the relevant period (being whole days
occurring after the time when the company first incurred expenditure of a
capital nature on that connection) bears to the number of whole days in the
year of income (being whole days occurring after the time when the company
first incurred expenditure of a capital nature on that connection) shall be
deemed to be an allowable deduction in respect of that relevant period;
(eb) where:
a divisible deduction is allowable to the company in relation
to
the year of income under section 70A in respect of expenditure of a capital
nature incurred by the company on the connection of mains electricity
facilities; and
the year of income is not the first year of income in which
the
company incurred expenditure of a capital nature on that connection;
a proportion of that divisible deduction equal to the proportion that
the number of whole days (if any) in that relevant period bears to 365 shall
be deemed to be an allowable deduction in respect of that relevant period;".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 25
25. After section 51AJ of the Principal Act the following section is
inserted:
Agreements for the provision of non-deductible non-cash business benefits
"51AK. (1) Subject to this section, where:
under an agreement:
a taxpayer incurs expenditure; and
a non-cash business benefit is provided to the taxpayer or another
person; and
that benefit is not exclusively for use or application for the purpose
of producing assessable income of the taxpayer;
the taxpayer shall be treated, for the purposes of this Act, as if so much of
the expenditure as does not exceed the arm's length value of the benefit had
been incurred by the taxpayer exclusively in respect of that benefit.
"(2) This section does not apply so as to treat particular expenditure, or
the cost of particular property, to be a particular amount for a particular
purpose if there is another provision of this Act that deems that expenditure,
or the cost of that property, to be a lesser amount for that purpose.
"(3) A reference in this section to producing assessable income includes a
reference to:
gaining assessable income; or
carrying on a business for the purpose of gaining or producing
assessable income.
"(4) Expressions used in this section and in section 21A have the same
respective meanings in this section as they have in that section.
"(5) In this section:
'agreement' means any agreement, arrangement or understanding, whether
formal or informal, whether express or implied and whether or not enforceable,
or intended to be enforceable, by legal proceedings;
'expenditure' includes a loss or outgoing.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 26
Calculation of depreciation
26. Section 56 of the Principal Act is amended:
by omitting paragraph (1) (b) and substituting the following
paragraph:
if the taxpayer has elected under subsection (1AA) that this
paragraph be applied to the unit of property-the percentage fixed, by or under
section 55, of the cost of the unit.";
by inserting after subsection (1) the following subsections:
"(1AA) A taxpayer may elect that paragraph (1) (b) be applied to all the
units of property in respect of which depreciation is first allowable to the
taxpayer in a particular year of income.
"(1AB) The election:
shall be exercised by notice in writing to the Commissioner;
shall be lodged with the Commissioner on or before the date of
lodgment of the return of income of the taxpayer for the year of income in
which depreciation is first allowable to the taxpayer in respect of those
units, or within such further time as the Commissioner allows; and
has effect for the purposes of determining the depreciation
allowable
to the taxpayer in respect of each of those units for the year of income
referred to in paragraph (b) and for all subsequent years of income.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 27
Repeal of section 56A
27. Section 56A of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 28
Repeal of section 57
28. Section 57 of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 29
Special depreciation allowance to primary producers
29. Section 57AA of the Principal Act is amended by omitting from subsection
(1) "55, 56, 56A and 57" and substituting "55 and 56".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 30
Depreciation on property used for primary production in the Northern
Territory
30. Section 57AB of the Principal Act is amended by omitting from subsection
(2) ", 56A, 57".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 31
Special depreciation on manufacturing plant and plant used in primary
production
31. Section 57AC of the Principal Act is amended by omitting from subsection
(2) ", subsection 56 (1), or section 56A or 57" and substituting "or
subsection 56 (1)".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 32
Special depreciation on new plant first used or installed on or after 1 July
1975 and before 1 July 1976
32. Section 57AD of the Principal Act is amended by omitting from subsection
(3) ", subsection 56 (1), or section 56A or 57" and substituting "or 56 (1)".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 33
Repeal of section 57AE
33. Section 57AE of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 34
Special depreciation on plant
34. Section 57AG of the Principal Act is amended:
by omitting from paragraph (2) (b) "57AE, 57AH, 57AJ, 57AK, 57AL" and
substituting "57AJ, 57AK";
by omitting from subsection (3) ", or section 56A or 57";
by omitting paragraph (3) (a) and substituting the following
paragraph:
where any of the following subparagraphs applies to the property:
the property was acquired by the taxpayer under a contract
entered into on or before 30 April 1981;
the property was constructed by the taxpayer and commenced to
be
constructed on or before 30 April 1981;
the property was acquired by the taxpayer under a contract
entered into after 25 May 1988;
both of the following sub-subparagraphs apply:
the property was constructed by the taxpayer and commenced to
be constructed after 25 May 1988;
the construction was not under a contract entered into on or
before 25 May 1988 nor under 2 or more contracts any of which was entered into
on or before that date;
before 1 July 1991, the property was not:
(A) used by the taxpayer for the purpose of producing assessable
income; or
(B) installed ready for use for that purpose and held in reserve
by
the taxpayer;
20% of the percentage actually fixed; or".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 35
Repeal of section 57AH
35. Section 57AH of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 36
Special depreciation on storage facilities for petroleum fuel
36. Section 57AJ of the Principal Act is amended:
by omitting from subsection (4) "56A, 57,";
by omitting subsection (6).
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 37
Special depreciation on property used for basic iron or steel production
37. Section 57AK of the Principal Act is amended by omitting from subsection
(4) "55, 56, 56A and 57" and substituting "55 and 56".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 38
Repeal of section 57AL
38. Section 57AL of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 39
Special depreciation on trading ships
39. Section 57AM of the Principal Act is amended by omitting from subsection
(5) "55, 56, 56A and 57" and substituting "55 and 56".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 40
Depreciation on pipe-lines for transporting petroleum
40. Section 58 of the Principal Act is amended by omitting from subsection
(4) ", 56 and 57" and substituting "and 56".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 41
Cost of mains electricity connections
41. Section 70A of the Principal Act is amended:
by omitting from subsection (1) "on or after 1 October 1980" and
substituting "after 25 May 1988 (other than under a contract entered into on
or before that day)";
by omitting subsection (3) and substituting the following subsection:
"(3) Subject to this section, where a taxpayer incurs expenditure to
which
this section applies, an amount equal to 10% of that expenditure is an
allowable deduction in the assessment of the taxpayer in respect of income
of:
the year of income in which the expenditure is incurred; and
each of the succeeding 9 years of income.";
by omitting subsection (5) and substituting the following subsection:
"(5) Where the taxpayer is recouped (whether by a government body or
otherwise) in a year of income in respect of the whole or part of an amount of
expenditure to which this section applies, the following provisions have
effect:
the assessable income of the taxpayer of the year of income shall
include so much of the total amount (in this subsection called the 'year's
recoupment amount') by which the taxpayer is recouped in that year (including
by virtue of any application of paragraph (b)) as does not exceed the amount
(in this subsection called the 'overall net deduction') ascertained in
accordance with the formula:
Total deductions - Total assessments
where:
Total deductions is the sum of all deductions allowed or allowable
under this section from the assessable income of the taxpayer of the year of
income, and of all preceding years of income, in relation to the expenditure;
Total assessments is the sum of all amounts included under this
section
in the assessable income of the taxpayer of all preceding years of income in
relation to the expenditure;
if the year's recoupment amount exceeds the overall net
deduction-the
amount of the excess shall, for the purposes of this section, be taken to be
an amount in respect of which the taxpayer is recouped (whether by a
government body or otherwise) in the next following year of income in respect
of a part of an amount of expenditure to which this section applies.";
by omitting subsection (7) and substituting the following subsection:
"(7) The reference in subsection (6) to the taxpayer's right to be
recouped in respect of any expenditure to which this section applies includes
a reference to the interest of the taxpayer in a partnership to the extent to
which the interest includes a right to be recouped in respect of any such
expenditure.";
by omitting from subsection (9) "an amount of expenditure" and
substituting "the whole or part of any expenditure";
by omitting from subsection (9) "in respect of that expenditure" and
substituting "in respect of the whole or any part of that expenditure";
by omitting subsection (10) and substituting the following subsection:
"(10) For the purposes of this Act, where a partnership has incurred
expenditure to which this section would apply if the partnership were a
taxpayer:
each partner, instead of the partnership, shall be taken to have
incurred:
so much of that expenditure as the partners have agreed is to
be
borne by that partner; or
if the partners have not so agreed-a proportion of that
expenditure equal to the proportion of the net income or partnership loss of
the partnership of the year of income in which the expenditure was incurred
that is represented by the individual interest of that partner in the net
income or partnership loss; and
if the partnership is recouped in respect of the whole or part of
the
expenditure that a partner was taken by paragraph (a) to have incurred-the
partner, instead of the partnership, shall be taken to have been so
recouped.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 42
Gifts, pensions etc.
42. Section 78 of the Principal Act is amended by omitting subparagraph (1)
(a) (xvi) and substituting the following subparagraph:
H.R.H. The Duke of Edinburgh's Commonwealth Study Conferences
(Australia) Incorporated;".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 43
Deduction in respect of new plant installed on or after 1 January 1976
43. Section 82AB of the Principal Act is amended by omitting from paragraph
(5B) (b) ", 57AL".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 44
Interpretation
44. Section 82KT of the Principal Act is amended:
by omitting "car" (wherever occurring) and "cars" from paragraph (e) of
the definition of "car" in subsection (1) and substituting "motor vehicle" and
"motor vehicles" respectively;
by inserting in subsection (1) the following definition:
" 'car records', in relation to a taxpayer in relation to a year of
income, means records that are maintained by the taxpayer in relation to the
year of income for the purposes of the provisions of this Subdivision that
refer to car records and that:
in the case of the year of income commencing on 1 July 1988 or
an
earlier year of income-are in writing in the English language or are in a form
that enables them to be readily accessible and convertible into writing in the
English language; or
in the case of a later year of income-are maintained in a form
approved by the Commissioner;".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 45
45. After section 82KTB of the Principal Act the following section is
inserted:
Car records to be completed before lodgment date of return etc.
"82KTBA. (1) For the purposes of this Act (other than section 223A), a
matter shall not be taken to have been specified or nominated in car records
of a taxpayer for a year of income unless the matter was included in those
records before the date of lodgment of the taxpayer's return for the year of
income, or before such later date as the Commissioner allows.
"(2) Subsection (1) is subject to any other provision of this Subdivision
that requires a particular matter to be treated as if it had been specified or
nominated in car records of a taxpayer.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 46
46. After Subdivision G of Division 3 of Part III of the Principal Act the
following Subdivision is inserted in Division 3 of Part III:
"Subdivision H-Period of deductibility of certain advance expenditure
Interpretation
this Subdivision, unless the contrary intention appears:
'agreement' means any agreement, arrangement, understanding or scheme,
whether formal or informal, whether express or implied and whether or not
enforceable, or intended to be enforceable, by legal proceedings;
'eligible service period', in relation to an amount of expenditure incurred
under an agreement, means the period from the beginning of:
the day, or the first day, on which the thing to be done under the
agreement in return for the amount of expenditure is required, or permitted,
as the case may be, to commence being done; or
if the expenditure is incurred on a later day-the day on which the
expenditure is incurred;
until the end of:
the day, or the last day, on which the thing to be done under the
agreement in return for the amount of expenditure is required, or permitted,
as the case may be, to cease being done; or
if that day or last day ends more than 10 years after the beginning
of the period-10 years after the beginning of the period;
'excluded expenditure' means an amount of expenditure:
less than $1,000;
required to be incurred by a law, or by an order of a court, of the
Commonwealth, a State or a Territory;
under a contract of service; or
to the extent that it is of a capital, private or domestic nature;
'transfer' includes assign.
"(2) Without otherwise limiting the generality of references in this
Subdivision to expenditure being incurred under an agreement in return for the
doing of a thing under the agreement:
where expenditure incurred under an agreement consists of a payment of
loan interest or a payment of a similar kind, the expenditure shall, for the
purposes of this Subdivision, be taken to be incurred in return for the making
available or continued making available, as the case requires, of the loan
principal, or other amount of a similar kind, under the agreement during the
period to which the payment relates;
where expenditure incurred under an agreement consists of a payment of
rent, a lease payment or a payment of a similar kind, the expenditure shall,
for the purposes of this Subdivision, be taken to be incurred in return for
the making available or continued making available, as the case requires, of
the thing rented or leased, or other thing of a similar kind, under the
agreement during the period to which the payment relates; and
where expenditure incurred under an agreement consists of a payment of
an insurance premium or a payment of a similar kind, the expenditure shall,
for the purposes of this Subdivision, be taken to be incurred in return for
the provision or continued provision, as the case requires, of insurance
against the risk concerned, or of a thing of a similar kind, under the
agreement during the period to which the payment relates.
Period of deductibility of certain advance expenditure
"82KZM. Where:
a taxpayer incurs expenditure under an agreement entered into after 25
May 1988;
the expenditure is:
incurred in return for the doing of a thing under the agreement
that
is not to be wholly done within 13 months after the day on which it is
incurred; and
not excluded expenditure; and
a deduction under section 51 in respect of the expenditure would, apart
from this section, be allowable from the assessable income of the taxpayer of
the year of income in which the expenditure is incurred; then, for the
purposes of this Act, instead of the deduction under section 51 being
allowable as mentioned in paragraph (c), a proportion of the deduction is
allowable from the assessable income of the taxpayer of each year of income
during which the whole or part of the eligible service period in relation to
the expenditure occurs, being a proportion ascertained in accordance with the
formula:
Period in year
------------------------
Eligible service period
where:
Period in year is the number of days in the whole or the part of the
eligible service period that occurs in the year of income;
Eligible service period is the number of days in the eligible service
period.
Transfer etc. of rights under agreement
"82KZN. Where:
under an agreement entered into either before or after the commencement
of this section, a taxpayer (in this section called the 'original taxpayer')
incurs expenditure in return for the doing of a thing during a period after
the incurring of the expenditure; and
either:
the original taxpayer transfers to another taxpayer (in this
section
called the 'recipient taxpayer') all of his or her rights under the agreement
in relation to the doing of the thing during the remainder of the period; or
the agreement is discharged (whether by performance or otherwise)
in
so far as it relates to the doing of the thing during the remainder of the
period;
the following provisions have effect for the purposes of this Subdivision:
if the whole or part of a deduction under section 51 in respect of the
expenditure is, because of this Subdivision, allowable from the assessable
of income occurring after the
is
instead allowable from the assessable income of the year of income in which
the transfer, assignment or discharge occurs;
if the recipient taxpayer incurs expenditure in return for the
transfer-the recipient taxpayer shall be taken to have incurred, under an
so much of that
expenditure as is not of a capital, private or domestic nature in return for
the doing of the thing during the remainder of the period.
Partnership changes where entire interest in agreement rights is not
transferred "82KZO. Where:
under an agreement entered into after 25 May 1988, a person (in this
section called the 'original person'), or the partners in a partnership (in
this section called the 'original partnership'), incurs or incur expenditure
in return for the doing of a thing during a period after the incurring of the
expenditure;
either of the following (in this section called a 'partnership change')
happens:
a partnership is formed or the original partnership is dissolved,
or
both; or
the constitution of the original partnership, or the interests of
the partners in the original partnership, is or are varied;
with the result that, after the partnership change:
a person (in this section called the 'later person'), or the
partners in a partnership (in this section called the 'later partnership'),
holds or hold all of any rights under the agreement to have the thing done
during the period after the partnership change; and
the original person, or one or more of the partners in the
original
partnership, has an interest in the rights after the partnership change; and
the whole or part of a deduction under section 51 in respect of the
expenditure (which whole or part is in this section called a 'spread
deduction') is, because of the application of this Subdivision, allowable from
the assessable income of the original person or the original partnership of
the year of income in which the partnership change happens or a subsequent
year of income; the following provisions have effect:
if a spread deduction is allowable in relation to the year of income in
which the partnership change occurs-the entitlement to the deduction shall,
for the purposes of this Act but subject to any later application of this
section, be apportioned between the original person or original partnership
and the later person or later partnership according to the portions of the
eligible service period in the year of income (or, if the case requires, of so
much of the period as occurs after a partnership change resulting from a
previous application of this section) that occur before and after the
partnership change;
if a spread deduction relates to a subsequent year of income-the later
person or later partnership, instead of the original person or original
partnership, shall, for the purposes of this Act but subject to any later
application of this section, be entitled to the deduction;
for the purposes of any later application of this section or section
82KZN, the later person or later partnership, instead of the original person
or original partnership, shall be taken to have incurred the expenditure under
the agreement.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 47
Interpretation
47. Section 102M of the Principal Act is amended by omitting subparagraph
(b) (v) of the definition of "eligible investment business" and substituting
the following subparagraphs:
futures contracts;
forward contracts;
interest rate swap contracts;
currency swap contracts;
forward exchange rate contracts;
forward interest rate contracts;
life assurance policies;
a right or option in respect of such a loan, security, share, unit,
contract or policy;
any similar financial instruments;".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 48
Allowable capital expenditure
48. Section 122A of the Principal Act is amended by inserting after
subsection (1A) the following subsections:
"(1B) Subsection (1) does not apply to expenditure on property (being plant
or articles for the purposes of section 54) unless:
either of the following conditions is satisfied:
the property was acquired by the taxpayer under a contract entered
into on or before 25 May 1988;
the property was constructed by the taxpayer and:
(A) the construction commenced on or before 25 May 1988; or
(B) the construction was under a contract entered into on or before
25
May 1988, or under 2 or more contracts any of which was entered into on or
before that date; and
before 1 July 1991, the property:
was used by the taxpayer for the purpose of producing assessable
income; or
was installed ready for use for that purpose and held in reserve
by
the taxpayer.".
"(1C) Notwithstanding section 170, the Commissioner may at any time amend an
assessment for the purpose of giving effect to subsection (1B) of this
section.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 49
Allowable capital expenditure
49. Section 124AA of the Principal Act is amended by inserting after
subsection (2) the following subsections:
"(2A) Expenditure on property (being plant or articles for the purposes of
section 54) is not allowable capital expenditure for the purposes of this
Division unless:
either of the following conditions is satisfied:
the property was acquired by the taxpayer under a contract entered
into on or before 25 May 1988;
the property was constructed by the taxpayer and:
(A) the construction commenced on or before 25 May 1988; or
(B) the construction was under a contract entered into on or before
25
May 1988, or under 2 or more contracts any of which was entered into on or
before that date; and
before 1 July 1991, the property:
was used by the taxpayer for the purpose of producing assessable
income; or
was installed ready for use for that purpose and held in reserve
by
the taxpayer.
"(2B) Notwithstanding section 170, the Commissioner may at any time amend an
assessment for the purpose of giving effect to subsection (2A) of this
section.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 50
Qualifying expenditure
50. Section 124ZG of the Principal Act is amended by omitting from
subsection (3) "or 57AE".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 51
51. After Division 16F of Part III of the Principal Act the following
Division is inserted:
"Division 16G-Debt Creation Involving Non-residents
"Subdivision A-Interpretation"
Interpretation
In this Division, unless the contrary intention appears:
'asset' means any form of property and includes:
an option, a debt, a chose in action, any other right, goodwill and
any other form of incorporeal property; and
any form of property created or constructed;
'associate' has the same meaning as in Division 16F, except that the
references in section 159GZC to 15% shall be read as references to 50%;
'capital entitlement factor' has the meaning given by section 159GZZ;
'foreign controller' has the meaning given by section 159GZZA;
'interest' means interest within the meaning of subsection 128A (1);
'scheme' has the same meaning as in Division 16F.
Capital entitlement factor
"159GZZ. (1) For the purposes of this Division, the capital entitlement
factor of a person in respect of a company at a particular time is the
percentage that the person (together with any associates of the person who are
non-residents) would be beneficially entitled to receive, directly or
indirectly, of any distribution of capital that is, or may be, made by the
company at that time.
"(2) For the purposes of subsection (1):
a person shall be taken to be beneficially entitled to receive
indirectly a particular percentage of a distribution of capital of a company;
or
2 or more persons shall be taken together to be beneficially entitled
to receive indirectly a particular percentage of a distribution of capital of
a company; if, in the event of a distribution of capital of the company, the
person or persons would (otherwise than as a shareholder or shareholders in
the company or as a trustee or trustees) receive or have received that
percentage of that distribution of capital, on the assumption that there had
been successive distributions of the relative parts of that distribution of
capital to and by each of any companies, partnerships or trustees interposed
between the company making the distribution of capital and that person or
those persons.
Foreign controller
"159GZZA. For the purposes of this Division, a person is a foreign
controller of a company if:
the person is a non-resident; and
the capital entitlement factor of the person in respect of the company
is at least 50%.
Acquisition of asset not previously in existence
"159GZZB. For the purposes of this Division, where a person or persons have
acquired an asset (other than a debt) that did not previously exist:
the asset shall be taken to have existed immediately before the
acquisition and to have been acquired from the person or persons who created
the asset; and
if the asset is taken to have been acquired from more than one
person-the respective interests of those persons in the asset immediately
before the acquisition shall be taken to have been:
if consideration was payable to those persons in respect of the
acquisition and subparagraph (ii) does not apply-proportional to their
entitlements to that consideration;
if consideration was payable to those persons in respect of the
acquisition but the Commissioner considers that it is not appropriate for
subparagraph (i) to apply-in such proportions as the Commissioner considers
reasonable in the circumstances; or
in any other case-in such proportions as the Commissioner
considers
reasonable in the circumstances.
Acquisition of asset through interposed persons
"159GZZC. Where, under a scheme, an asset is acquired by a person or persons
(in this section called the 'final buyer'), indirectly through one or more
interposed persons, from another person or persons (in this section called the
'original seller'), the Commissioner may, for the purposes of this Division,
treat the acquisition of the asset as if it had been directly by the final
buyer from the original seller.
"Subdivision B-Application of Division
Application of Division
"159GZZD. This Division applies to interest incurred in respect of an amount
owing in connection with the acquisition of an asset if:
the interest was incurred on or after 1 July 1987; and
the acquisition occurred on or after 1 July 1987 (otherwise than under
a contract entered into before that date).
"Subdivision C-Reduction of Interest Deductions
Reduction or extinction of interest deduction in case of certain created debt
"159GZZE. (1) Where:
apart from this Division and Division 16F, an amount of interest is
allowable as a deduction from the assessable income of a taxpayer that:
is a company; and
is not a taxpayer in the capacity of trustee;
the interest is in respect of an amount owing in connection with the
acquisition of an asset by the taxpayer, either alone or together with another
person or persons, from another company (in this section called the 'eligible
seller'), either alone or together with another person or persons; and
any of the following subparagraphs applies in relation to the
acquisition:
the eligible seller:
(A) was a foreign controller of the taxpayer immediately after the
acquisition; or
(B) later became a foreign controller of the taxpayer under a scheme
of
which the acquisition was a part;
the taxpayer:
(A) was a foreign controller of the eligible seller immediately
before
the acquisition; or
(B) earlier ceased to be a foreign controller of the eligible seller
under a scheme of which the acquisition was a part;
in a case to which neither subparagraph (i) nor (ii) applies-the
following conditions are satisfied in relation to a person (in this section
called the 'common foreign controller'):
(A) the person was a foreign controller of the eligible seller
immediately before the acquisition, or earlier ceased to be a foreign
controller of the eligible seller under a scheme of which the acquisition was
a part;
(B) the person was a foreign controller of the taxpayer immediately
after the acquisition, or later became a foreign controller of the taxpayer
under a scheme of which the acquisition was a part;
the deduction so allowable shall be reduced in accordance with this section.
"(2) If there are 2 or more eligible sellers in relation to the acquisition
of the asset by the taxpayer, subsection (1) applies successively to each
combination of the taxpayer and each of those eligible sellers.
"(3) Where:
subsection (1) applies, because of subparagraph (1) (c) (iii), in
relation to the taxpayer and a particular eligible seller; and
there are 2 or more common foreign controllers in connection with that
application of subsection (1);
the amount calculated for the purposes of that application of subsection (1)
shall be the aggregate of the amounts that would be calculated in relation to
each of those common foreign controllers.
"(4) In respect of each application of subsection (1) in relation to the
same acquisition of an asset, the deduction shall be reduced by the amount
calculated in accordance with the formula:
Deduction X Asset ownership factor X Capital entitlement factor
where:
Deduction is the amount of the deduction that would be allowable apart from
this Division and Division 16F;
Asset ownership factor is the eligible seller's interest in the asset
immediately before the acquisition, expressed as a proportion of the total
interests in the asset;
Capital entitlement factor is:
where subparagraph (1) (c) (i) applies-the capital entitlement
factor
of the eligible seller in respect of the taxpayer:
if sub-subparagraph (1) (c) (i) (A) applies-immediately after
the
acquisition; or
if sub-subparagraph (1) (c) (i) (B) applies-immediately after
the
eligible seller became a foreign controller of the taxpayer;
where subparagraph (1) (c) (ii) applies-the capital entitlement
factor of the taxpayer in respect of the eligible seller:
if sub-subparagraph (1) (c) (ii) (A) applies-immediately before
the acquisition; or
if sub-subparagraph (1) (c) (ii) (B) applies-immediately before
the taxpayer ceased to be a foreign controller of the eligible seller; or
where subparagraph (1) (c) (iii) applies-the smaller of the
following
percentages:
the capital entitlement factor of the common foreign controller
in respect of the eligible seller:
(A) if the common foreign controller was a foreign controller of
the
eligible seller immediately before the acquisition-immediately before the
acquisition; or
(B) if the common foreign controller earlier ceased to be a
foreign
controller of the eligible
seller as mentioned in sub-subparagraph
(1) (c) (iii) (A)-immediately before that occurred;
the capital entitlement factor of the common foreign controller
in respect of the taxpayer:
(A) if the common foreign controller was a foreign controller of
the
taxpayer immediately after the acquisition-immediately after the acquisition;
or
(B) if the common foreign controller later became a foreign
controller of the taxpayer as mentioned in sub-subparagraph (1) (c) (iii)
(B)-immediately after that occurred.
"(5) Where the interest is only partly in respect of the amount owing as
mentioned in paragraph (1) (b), this section applies to the deduction to a
corresponding extent.
"(6) In the application of this section to the acquisition of an asset, an
entitlement to receive, directly or indirectly, a particular percentage of a
distribution of capital of a company shall not be counted to the extent to
which that entitlement has previously been counted in the application of this
section to that acquisition.
Section 159GZZE not to apply in certain cases
"159GZZF. (1) Section 159GZZE does not apply to the acquisition of an asset
if:
the asset is cash; and
the acquisition was not, and was not part of, the acquisition of a
business or of part of a business.
"(2) Section 159GZZE does not apply to the acquisition of an asset if:
immediately before the acquisition, the asset was trading stock of the
eligible seller (or of all of the eligible sellers, as the case requires);
and
the acquisition was not, and was not part of, the acquisition of a
business or of part of a business.
"(3) Section 159GZZE does not apply to the acquisition of an asset if the
asset is a share in a company and had not previously been issued.
"(4) Section 159GZZE does not apply to the acquisition of an asset if:
before the acquisition, the asset had not previously been used, held or
applied by any person:
for the purpose of gaining or producing assessable income; or
in carrying on a business for the purpose of gaining or producing
assessable income; and
the eligible seller (or each of the eligible sellers, as case requires)
was a non-resident immediately before the acquisition.
"(5) Section 159GZZE does not apply to the acquisition of an asset if the
Commissioner is satisfied that the acquisition has not, and will not, result
directly or indirectly in:
an increase in the overall indebtedness of the group constituted by:
each affected taxpayer; and
the eligible seller (or each of the eligible sellers, as the case
requires); or
an increase in the ability of:
the eligible seller (or any of the eligible sellers, as the case
requires); or
any associate of the eligible seller (or of any of the eligible
sellers, as the case requires);
to pay an amount (other than an amount assessable under section 44 or
liable to tax under subsection 128B (4)) to:
a foreign controller of the eligible seller (or of any of the
eligible sellers, as the case requires); or
an associate of a foreign controller of the eligible seller (or of
any of the eligible sellers, as the case requires).
"(6) In this section:
'affected taxpayer', in relation to the acquisition of an asset, means a
taxpayer to whom section 159GZZE would apply (apart from this section) in
relation to the acquisition;
'eligible seller', in relation to the acquisition of an asset, means a
person who is an eligible seller for the purposes of section 159GZZE in
relation to that acquisition.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 52
Rebate in respect of certain pensions
52. Section 160AAA of the Principal Act is amended:
by omitting from paragraphs (1) (g) and (h) "$6,142-$250" and
substituting "$6,892-$430";
by omitting from subparagraphs (2) (d) (i) and (ii) "$10,350-$430" and
substituting "$11,059-$600";
by omitting from subparagraphs (2) (e) (i) and (ii) "$5,850-$180" and
substituting "$6,184-$260".
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 53
Amendments relating to car records
53. The Principal Act is amended as set out in the Schedule.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 54
Application of amendments
54. (1) In this section:
"amended Act" means the Principal Act as amended by this Part.
(2) The amendments made by section 17 apply to natural increase occurring
after 30 June 1988.
(3) Regulations that were in force for the purposes of section 34 of the
Principal Act immediately before the commencement of this subsection have
effect as if they had been made for the purposes of section 34 of the amended
Act.
(4) Subject to subsection (5), the amendments made by sections 18 and 19
apply to dividends paid after 25 May 1988, other than dividends paid in
respect of shares issued on or before that date.
(5) In the case of dividends paid on shares issued on or before 25 May 1988,
the amendments made by sections 18 and 19 apply if the dividends are paid
after the date of commencement of this subsection.
(6) The amendment made by section 20 applies to dividends paid after 25 May
1988, other than:
dividends declared on or before that date; or
dividends that are deemed by section 108 of the amended Act to be paid
after that date because of an amount having been paid or credited on or before
that date.
(7) The amendments made by subsection 24 (1), sections 26 to 33 (inclusive),
paragraphs 34 (a) and (b), section 35, paragraph 36 (a), sections 37 to 40
(inclusive) and sections 43 and 50 apply to a unit of property if:
the property was acquired by the taxpayer under a contract entered into
after 25 May 1988;
both of the following subparagraphs apply:
the property was constructed by the taxpayer and commenced to be
constructed after 25 May 1988;
the construction was not under a contract entered into on or
before
25 May 1988 nor under 2 or more contracts any of which was entered into on or
before that date; or
on or before 30 June 1991, the property was not:
used by the taxpayer for the purpose of producing assessable
income;
or
installed ready for use for that purpose by the taxpayer and held
in
reserve.
(8) Notwithstanding the repeal of section 57AH, and the omission of
subsection 57AJ (6), of the Principal Act, that subsection continues to have
effect as if the amendments made by this Part had not been made.
(9) Subparagraph 78 (1) (a) (xvi) of the amended Act applies to gifts made
on or after 24 April 1986.
(10) Notwithstanding the amendment of section 78 of the Principal Act made
by this Act, subparagraph 78 (1) (a) (xvi) of the Principal Act continues to
apply to gifts made before 1 January 1989 as if that amendment had not been
made.
(11) The amendment made by paragraph 44 (a) applies in relation to an
expense incurred by a taxpayer in a year of income commencing on or after 1
July 1988.
(12) Section 82KZM of the amended Act does not apply to expenditure:
incurred by a partnership under an agreement as a result of another
agreement entered into:
before the formation of the partnership; and
on or before 25 May 1988;
under which the partnership, when formed, would incur the expenditure
under
the first-mentioned agreement; or
incurred on or before 30 June 1988 in subscribing for or purchasing a
prescribed interest, within the meaning of the Companies Act 1981 or a
corresponding provision of a law in force in a State or Territory, in relation
to which a prospectus was registered under that Act or that law on or before
25 May 1988.
(13) Subject to subsections (14), (15), (16) and (17), the amendments made
by paragraph 44 (b) and sections 45 and 53 apply in relation to an expense
incurred by a taxpayer in a year of income commencing on or after 1 July 1986.
(14) Subject to subsections (15), (16) and (17), section 223A of the
Principal Act shall be taken never to have applied in relation to percentages
specified, or purporting to be specified, in returns.
(15) Section 223A of the amended Act applies to the specification, or
purported specification, of a percentage in car records of a taxpayer only
if:
the specification, or purported specification, occurs after the
commencement of this subsection (whether or not the specification is deemed by
subsection (16) of this section to have occurred before the commencement of
this subsection);
the percentage is deemed by subsection (17) of this section to have
been specified in the car records; or
because of the application of section 82KTC of the amended Act in
relation to a document lodged after the commencement of this subsection, the
percentage is deemed to have been specified in the car records.
(16) Where, not later than one month after the commencement of this
subsection, a taxpayer specifies or nominates a particular in car records of
the taxpayer for a year of income ending before the commencement of this
subsection, that particular shall be deemed to have been specified or
nominated in those car records before the date of lodgment of the taxpayer's
return for that year of income.
(17) Where, in a return for a year of income lodged before the commencement
of this subsection, a taxpayer specified, or purported to specify, (including
a specification that is treated as having occurred because of section 82KTC of
the Principal Act) a percentage as mentioned in paragraph 223A (1) (a) of the
Principal Act, that percentage shall be deemed, for the purposes of section
223A of the amended Act, to have been specified in car records of the taxpayer
for that year of income.
(18) The amendment made by section 47 applies to a business carried on at
any time during the year of income commencing on 1 July 1987 or any subsequent
year of income.
(19) Division 16G of Part III of the amended Act applies to an acquisition
of an asset that occurred on or after 1 July 1987 and before 20 June 1988 as
if the reference in section 159GZZA of the amended Act to 50% were a reference
to 100%.
(20) The amendment made by section 23 of the Taxation Laws Amendment Act
(No. 2) 1988 has effect for all purposes of Division 16G of Part III of the
amended Act.
(21) The amendments made by sections 14 and 52 apply to assessments in
respect of income of the year of income commencing on 1 July 1988 and of all
income.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 55
Special transitional provisions-non-cash business benefits provided on or
before 31 August 1988
55. (1) This section applies to non-cash business benefits provided on or
before 31 August 1988.
(2) If:
a non-cash business benefit is income derived by a taxpayer in a year
of income;
the taxpayer is:
a company;
a trustee of a trust estate; or
a partnership; and
the recipient of the benefit is:
if subparagraph (b) (i) applies-a shareholder in, or a director
of,
the company;
if subparagraph (b) (ii) applies-a person who benefits or is
capable
of benefiting under the trust concerned; or
if subparagraph (b) (iii) applies-a partner in the partnership;
the amended Act and the other provisions of this section apply as if the
benefit were income derived by the recipient instead of by the taxpayer.
(3) If:
a non-cash business benefit is income derived by a taxpayer in a year
of income (in this subsection called the "derivation year of income"); and
(b) the benefit is utilised by the recipient in another year of income
(which other year of income is in this subsection called the "utilisation year
of income");
the amended Act and the other provisions of this section apply as if the
benefit were income derived by the taxpayer in the utilisation year of income
instead of in the derivation year of income.
(4) Subject to subsection (5), where:
a non-cash business benefit is income derived by a taxpayer in a year
of income; and
(b) the benefit consists of a unit of property in respect of which
depreciation is allowable to the taxpayer under the amended Act in relation to
any year of income;
then, for the purpose of calculating the depreciation allowable to the
taxpayer, the cost of that unit of property shall be taken to be the amount of
its arm's length value.
(5) Subsection (4) does not apply so as to treat the cost of a unit of
property to be a particular amount for the purpose of calculating depreciation
allowable to the taxpayer if there is a provision of the amended Act that
deems the cost of that unit to be a lesser amount for that purpose.
(6) Expressions used in this section and in section 21A of the amended Act
have the same respective meanings in this section as they have in that
section.
(7) In this section, "amended Act" means the Principal Act as amended by
this Act.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 56
Transitional-section 70A
56. Notwithstanding the amendments made by section 41, section 70A of the
Principal Act as in force immediately before the commencement of that
amendment continues to apply in relation to expenditure of a kind referred to
in subsection (1) of that section as so in force if the expenditure was or is
incurred:
on or before 25 May 1988; or
after 25 May 1988 under a contract entered into on or before that day.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 57
Provisional tax for 1988-89 year
57. (1) For the purposes of the application of subsection 221YC (1) of the
Income Tax Assessment Act 1936 (in this section called the "Assessment Act")
in ascertaining the amount of provisional tax payable by a taxpayer in respect
of the year of income that commenced on 1 July 1988 (in this section called
the "current year of income"), being a taxpayer who would, apart from this
section and subsection 221YBA (5) of the Assessment Act, be liable to pay
provisional tax calculated in accordance with subsection 221YC (1) or (1A) of
the Assessment Act in respect of the current year of income:
if paragraph 221YC (1) (a) of the Assessment Act applies to the
taxpayer-the amount of provisional tax payable by the taxpayer in respect of
the current year of income by virtue of that paragraph is the amount
ascertained by deducting from the amount of income tax that would have been
assessed in respect of the amount that would have been the taxable income of
the taxpayer of the year of income that commenced on 1 July 1987 (in this
section called the "preceding year of income") if:
the taxable income of the taxpayer of the preceding year of income
had, except for the purpose of determining the notional income for the purpose
of section 59AB or 86 of the Assessment Act, been increased by 12%;
where, for the purposes of Division 6AA of Part III of the
Assessment Act:
(A) in the case of a taxpayer to whom Subdivision C of Division 3 of
Part II of the Income Tax Rates Act 1986 applied-the taxpayer's eligible
taxable income of the preceding year of income exceeded $416; or
(B) in the case of a taxpayer to whom Subdivision D of Division 3 of
Part II of the Income Tax Rates Act 1986 applied-the taxpayer had an eligible
taxable income of the preceding year of income;
that eligible taxable income had been increased by 12%;
for the purposes of Division 16A of Part III of the Assessment Act
(other than the purpose of calculating the average eligible taxable income of
the taxpayer of the current year of income), the eligible taxable income of
the taxpayer of the preceding year of income had been increased by 12%;
for the purposes of section 156 of the Assessment Act, the deemed
taxable income from primary production of the taxpayer of the preceding year
of income had been increased by 12%;
the Income Tax Rates Act 1986, other than Division 4 of Part II, as
that Act applies to assessments in respect of the current year of income, had
been in force and applied to assessments in respect of the preceding year of
income;
the Medicare Levy Act 1986, as that Act applies to assessments in
respect of the current year of income, had been in force and applied to
assessments in respect of the preceding year of income;
(vii) where Division 16 of Part III of the Assessment Act applied in the
taxpayer's assessment in respect of the preceding year of income-that Division
had applied as if the conditions set out in subparagraphs (i) to (vi)
(inclusive) were applicable for the purposes of making that assessment
other than for the purpose of determining the average income of the taxpayer for
the purposes of the application of that Division;
the taxpayer had not been entitled to any rebate (other than a
rebate under section 156 of the Assessment Act applicable in relation to the
taxpayer in accordance with subparagraph (vii)) or credit in the taxpayer's
assessment; and
the assessable income of the taxpayer of the preceding year of
income had not included any net capital gain within the meaning of Part IIIA
of the Assessment Act;
the sum of:
the rebates (other than a rebate under section 156, 160ACD, 160AQU,
160AQX, 160AQY or 160AQZ of the Assessment Act) and credits to which the
taxpayer was entitled in the taxpayer's assessment in respect of income of the
preceding year of income; and
where the taxpayer was entitled to a rebate under section 160AQU,
160AQX, 160AQY or 160AQZ of the Assessment Act in the taxpayer's assessment in
respect of the income of the preceding year of income-the amount of that
rebate increased by 12%; and
if paragraph 221YC (1) (b) of the Assessment Act applies to the
taxpayer-the amount of provisional tax payable by the taxpayer in respect of
the current year of income by virtue of that paragraph is:
in a case where:
(A) paragraph 221YC (1) (a) of the Assessment Act would apply to the
taxpayer in relation to the current year of income but for subsection 221YA
(5) of that Act; and
(B) the taxpayer is a taxpayer to whom paragraph 221YA (5) (a) of the
Assessment Act applies, but paragraph 221YA (5) (b) of that Act does not
apply, in relation to the current year of income;
the amount that would be payable by the taxpayer under paragraph 221YC
(1) (a) of the Assessment Act (as affected by paragraph (a) of this
subsection) if subsection 221YA (5) were not included in that Act and Division
16C of Part III of that Act were not applicable in relation to the preceding
year of income;
in a case where:
(A) paragraph 221YC (1) (a) of the Assessment Act would apply to the
taxpayer in relation to the current year of income but for subsection 221YA
(5) of that Act; and
(B) the taxpayer is a taxpayer to whom paragraph 221YA (5) (b) of the
Assessment Act applies, but paragraph 221YA (5) (a) of that Act does not
apply, in relation to the current year of income;
the amount that would be payable by the taxpayer under paragraph 221YC
(1) (a) of the Assessment Act (as affected by paragraph (a) of this
subsection) if subsection 221YA (5) were not included in that Act and the
taxable income of the taxpayer of the preceding year of income had been
increased by the sum of the deductions allowed or allowable to the taxpayer
under sections 77F, 124ZAF and 124ZAFA of that Act in the taxpayer's
assessment in respect of the preceding year of income;
in a case where:
(A) paragraph 221YC (1) (a) of the Assessment Act would apply to the
taxpayer in relation to the current year of income but for subsection 221YA
(5) of that Act; and
(B) the taxpayer is a taxpayer to whom paragraphs 221YA (5) (a) and
(b)
of the Assessment Act apply in relation to the current year of income;
the amount that would be payable by the taxpayer under paragraph 221YC
(1) (a) of the Assessment Act (as affected by paragraph (a) of this
subsection) if:
(C) subsection 221YA (5) were not included in the Assessment Act;
(D) Division 16C of Part III of the Assessment Act were not
applicable
in relation to the preceding year of income; and
(E) the amount that, but for this sub-subparagraph, would have been
the
taxable income of the taxpayer of the preceding year of income had been
increased by the sum of the deductions allowed or allowable to the taxpayer
under sections 77F, 124ZAF and 124ZAFA of the Assessment Act in the taxpayer's
assessment in respect of the preceding year of income; and
in any other case-the amount that would be payable by the taxpayer
under paragraph (a) of this subsection if the provisions of that paragraph
applied to the taxpayer in relation to the taxpayer's income of the current
year of income and:
(A) the taxable income of the taxpayer of the preceding year of
income
had been equal to the amount that the Commissioner estimates would have been
the provisional income of the taxpayer if Division 16C of Part III of the
Assessment Act were not applicable in relation to the preceding year of income
increased by the sum of the deductions (if any) allowed or allowable to the
taxpayer under sections 77F, 124ZAF and 124ZAFA of the Assessment Act in the
taxpayer's assessment in respect of the preceding year of income;
(B) for the purposes of Division 16 of Part III of the Assessment
Act,
the deemed taxable income from primary production of the taxpayer of the
preceding year of income were such amount (if any) as the Commissioner
determines;
(C) for the purposes of Division 6AA of Part III of the Assessment
Act,
the amount of the eligible taxable income of the taxpayer of the preceding
year of income were such amount (if any) as the Commissioner determines; and
(D) for the purposes of Division 16A of Part III of the Assessment
Act,
the amount of the eligible taxable income of the taxpayer of the preceding
year of income were such amount (if any) as the Commissioner determines.
(2) A reference in this section to the amount of provisional tax payable by
a taxpayer includes a reference to the amount that, but for subsection 221YBA
(5) of the Assessment Act, would be the provisional tax payable by the
taxpayer.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 59
Principal Act
59. In this Part, "Principal Act" means the Taxation Administration Act
1953*3*.
*3* No. 1, 1953, as amended. For previous amendments, see Nos. 28, 39, 40 and
52, 1953; No. 18, 1955; No. 39, 1957; No. 95, 1959; No. 17, 1960; No. 75,
1964; No. 155, 1965; No. 93, 1966; No. 120, 1968; No. 216, 1973; No. 133,
1974; No. 37, 1976; Nos. 19 and 59, 1979; Nos. 39 and 117, 1983; No. 123,
1984; No. 65, 1985 (as amended by No. 193, 1985); Nos. 4, 47, 104, 123 and
168, 1985; No. 41, 46, 48, 112, 144 and 154, 1986; No. 49, 1986 (as amended by
No. 141, 1987); Nos. 120 and 145, 1987; No. 62, 1987 (as amended by No. 108,
1987); No. 108, 1987 (as amended by No. 138, 1987); and No. 138, 1987 (as
amended by No. 11, 1988).
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988
- SECT 60
Repeal of section 14ZKA
60. Section 14ZKA of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT (No. 4) 1988 No. 95 of 1988 - SCHEDULE
SCHEDULE
Section 53
AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936 RELATING TO CAR RECORDS
Subsection 82KT (1) (subparagraphs (b) (v) and (c) (ii) of the definition of
"applicable log book period"):
Omit "his or her return", substitute "the taxpayer's car records".
Section 82KTC:
Repeal the section, substitute the following section:
Deemed specification of matters in car records
"82KTC. Where a taxpayer fails, through inadvertence, to specify any or all
of the following matters in car records of the taxpayer for a year of income:
a period of a kind mentioned in the definition of 'applicable log book
period' in subsection 82KT (1);
a nomination of the kind mentioned in subsection 82KTJ (1) or
particulars of such a nomination;
a percentage of a kind mentioned in section 82KUB or 82KUC;
the Commissioner may determine that a period, nomination, particular or
percentage of that kind specified by the taxpayer in a document lodged with
the
Commissioner shall be treated, for the purposes of this Subdivision, as if it
had been specified by the taxpayer in those car records.".
Subsection 82KTJ (1):
Omit "his or her return", substitute "the taxpayer's car records".
Paragraph 82KUB (a):
Omit "his or her return", substitute "the taxpayer's car records".
Sub-subparagraph 82KUB (b) (i) (D):
Omit "his or her return", substitute "the taxpayer's car records".
Sub-subparagraph 82KUB (b) (ii) (D):
Omit "his or her return", substitute "the taxpayer's car records".
Subparagraph 82KUB (b) (iv):
Omit "his or her return", substitute "the taxpayer's car records".
Subparagraph 82KUB (c) (ii):
Omit "his or her return", substitute "the taxpayer's car records".
Paragraph 82KUC (b):
Omit "his or her return", substitute "the taxpayer's car records".
Sub-subparagraphs 82KUC (b) (i) (B) and (ii) (B):
Omit "return", substitute "car records".
Paragraphs 82KUD (a) and (b):
Omit "return", substitute "car records".
Paragraph 82KUE (1) (a):
Omit "his or her return", substitute "the taxpayer's car records".
Paragraph 82KUE (1) (c):
Omit "return", substitute "car records".
Paragraph 82KUE (1) (d):
Omit "his or her return", substitute "the taxpayer's car records".
Omit "the return", substitute "the car records".
Paragraph 82KUE (2) (b):
Omit "his or her return", substitute "the taxpayer's car records".
Subsection 82KUE (2):
Omit "the return", substitute "the car records".
Paragraph 223A (1) (a):
Omit "his or her return", substitute "the taxpayer's car records".
The
Act No. 95, 1988 amended as indicated in the Tables below.
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
95, 1988 | 24 Nov 1988 | |||
107, 1989 | 30 June 1989 | S. 30: | — | |
75, 2010 | 28 June 2010 | Schedule 6 (item 71): 29 June 2010 | — |
(a) Subsection 2(2) of theTaxation Laws Amendment Act (No. 3) 1989 provides as follows:
(2) Part 6 shall be taken to have commenced immediately after the
Taxation Laws
Amendment Act (No. 4) 1988 received the Royal Assent.The
Taxation Laws Amendment Act (No. 4) 1988 received the Royal Assent on 24 November 1988.
| |
Provision affected | How affected |
S. 2........................................... | am. No. 107, 1989 |
S. 58......................................... | rep. No. 75, 2010 |
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0
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